In its policy deliberations in 1978, the Federal Open Market Committee (FOMC) clarified the roles that the monetary aggregates play in policy considerations in two respects. The interpretation and emphasis to be placed on the FOMC’s two-month growth ranges of the monetary aggregates were clarified by changes in the wording of the domestic policy directive. The Committee also clarified the role of the growth ranges of the narrowly defined money stock (M1), relative to the growth ranges of the more broadly defined monetary aggregates during the transition to the new automatic transfer service between checking and savings accounts. This article discusses these clarifications and reviews the decisions of the FOMC in 1978.